A major setback in any mixed economy is?

A. that is combined both the capitalist and socialist systems
B. the freedom of choice in the production and consumption of goods and services
C. that government intervenes to secure full utilization of resources
D. that economy decisions are determined by market forces
E. that the absence of profit motive in the public sector may reduce incentives for hard work

Correct Answer:

Option E – that the absence of profit motive in the public sector may reduce incentives for hard work